The life cycle of a Better Globe treeYour tree is planted and cared for by Better Globe for 20 years. The trees are managed on a commercial basis and eventually sold as wood products. The life cycle of a Better Globe tree can be simplified as follows:Year 1:You buy a tree for 17 euros.Year 1-4:The tree is planted, cared for by Better Globe, and grows to later provide a return in the form of harvest.Year 5-19:The tree yields fruit, nuts, rubber, oil, or other products (depending on the species) during a 15 year period.Year 20:The tree is felled, and the timber is either sold or processed into various products, such as hardwood floors, fine joinery, or the equivalent.The above life cycle is profitable and self-generating, allowing Better Globe to share some of the surplus from its activities each year.The business model for a Better Globe treeTo engage the thousands of people we need to achieve our goal of planting five billion trees by 2026, we need to create an incentive, one that causes people to be altruistic. By being a profitable commercial business and sharing the profits with those who have bought and own the trees, we believe that we create this incentive.We have created the following, somewhat simplified economic model for a Better Globe tree and its yield.Year 1:Purchase of the tree for 17 euros- € 17.00Year 1-4:The tree grows and later yields a harvest, e.g., fruit, nuts, or rubber.€ 0.00Year 5-19:15% of the purchase price of 17 euros for 15 years (i.e., 15 years x € 17 x 15%)+ € 38.25Year 20:The tree is felled. You get an expected return of 10 times the purchase price of 17 euros.+ € 170.00Total expected return over 20 years:€ 191.25The interpretation of the business model for a treeThe business model above shows in figures that by purchasing a tree for 17 euros today you will have an expected return on this tree of about 191 euros over 20 years. Starting with the fifth year following the purchase of your tree and then annually for 15 years thereafter, the expected return is 15% of 17 euros – that is 2.55 euros.This means that after about 11 years, you will receive the 17 euros that the tree cost you. For the remaining nine years, you will have an expected profit, both in the form of an expected annual return of approximately a additional 20 euros; after 20 years, when the tree is harvested, you will receive an additional expected return of about 170 euros, depending on the price of tropical trees.If you buy 10, 100, or 1,000 trees, the expected result will be greater in proportion to the increase.